Orange Purchases Orascom’s Right in Mobinil (ECMS)

Published Date : Feb 24, 2015

Orange and OTMT have together agreed that Orange is ready to purchase all the market shares. It would also include the voting rights that are supposedly held directly or indirectly by OTMT in the ECMS. The company is Egypt’s dominant mobile telecom providers. Signed by both the parties in April 2012, the transaction is planning to be completed through the Orange’s call option. 

The transfer plans to get completed as over the counter that will be held between the two main shareholders. The ultimate transaction will be finalized by the end of the quarter 2015. 

ECMS is listed on the Egyptian stock exchange. It also functions within the Mobinil brand. 

The overall transaction will produce a direct and indirect interest on the totality of OTMT’s share in ECMS to Orange. 

The total consideration amounts to €209.6 million EUR which also consists of OTMT’s 5% direct stake. The MT Telecom (MTT) voting rights is 28.75% and ECMS is at 280.7 EGP1 per share.

The market share of the company is entirely owned by Orange. It is for a consideration of around 45.8 million EUR. This total has been conditioned entirely by the company. As a result of the transaction, the company plans to increase its stake in ECMS and is anticipated to reach 99% capital. 

Meanwhile, the Middle East and Africa are the most vital regions of Orange’s future growth and development strategy. This investment is a definite confirmation for Orange to the Egyptian market in terms of the most important assets found in that region as well as being the largest market in regards of customers. 

In terms of revenue, Mobinil registered a 4% year-on-year growth and development in Q3 2014. It also had a database of around 33 million customers.